- DLA Piper’s Tech Index hits a record score of 71, showing unprecedented tech sector optimism.
- 36% of tech companies expect revenue growth to exceed 6% in the next 12 months.
The global tech industry is showing stronger-than-expected confidence levels for 2024, with DLA Piper’s latest Tech Index recording an all-time high score of 71—three points higher than its previous record of 68. This year’s report marks the first time the survey has expanded beyond Europe to capture global perspectives.
The comprehensive study, which interviewed 1,200 industry executives, investors, and regulatory officials in six regions, reveals that two-thirds of organisations expect revenue increases in the coming year, with 36% projecting more than 6% growth. This optimistic outlook comes from North America, Latin America, Europe, the Middle East, Africa, and the Asia Pacific regions.
The research encompasses a diverse range of companies, from small enterprises with fewer than 100 employees to major corporations employing over 10,000, with revenues ranging from US$10 million to US$10 billion. The broad spectrum provides a comprehensive view of tech industry growth trends across different scales of operation.
Respondents expressed confidence in several vital areas driving tech industry growth, including:
- Current economic environment,
- Venture capital markets,
- Talent availability,
- Overall regulatory landscape.
However, the report identifies geopolitical instability as the primary factor tempering industry optimism. When asked about the impact of the geopolitical environment on the growth outlook, the score dropped significantly to 53, reflecting concerns about ongoing conflicts, trade tensions, and political uncertainties.
“Given the expanded scope of the latest Index, there are some surprising findings, not least a strikingly high level of confidence among respondents worldwide,” the report noted, highlighting the tech sector’s resilience despite challenging conditions.
The confidence levels showed remarkable consistency across regions with only slight variation. North America, Latin America, and Africa displayed the highest confidence levels, while the Middle East, Europe, and Asia Pacific showed slightly lower but still robust scores.
Mark O’Conor, Global Co-Chair of DLA Piper’s Tech sector in London, emphasised the significance of a global perspective: “For the first time, this report offers a truly global perspective on the tech sector, drawing insights from industry leaders and policymakers worldwide.”
The study also revealed that organisations have become more resilient to perpetual uncertainty and various challenges, including COVID-19, economic and political instability, and supply chain disruptions. These experiences seem to have led to a more adaptable approach to growth opportunities in the sectore.
Looking ahead, AI emerges as a critical driver of tech industry growth, with 63% of respondents identifying it as the primary area for potential growth. The figure rises to 72% in Europe, indicating solid regional variations in technology adoption and focus areas.
The positive outlook for tech industry growth in 2024 represents a significant vote of confidence in the sector’s ability to navigate complex global challenges while maintaining innovation and expansion. Its resilience suggests that the industry has developed robust strategies to thrive despite uncertain economic and political conditions.
